subject: Why Texas Home Equity Loan Unique From Other State? [print this page] Home equity is the difference of the present home market value of your property minus the mortgage. For example if your house is estimated at $100,000 and with a mortgage of $30,000 thus your home equity will be $70,000.
Texas homeowners did not have access to home equity loans until 1997 and was designed to protect individuals and their families. In fact, it is one of the strongest consumer protections in the nation.
Among its provisions, Texas home equity loan cannot exceed more than 80% of the market value of a certain home. If a home is valued at $100,000 with a $30,000 mortgage, the most you can get is $50,000. However, if the mortgaged is still value at $50,000, then you cannot avail the Texas home equity loan because the fair market value exceeds 80%.
A borrower can only aim for one Texas home equity loan at a time until the first one is paid although additional financing may be incur by the borrower. Likewise, Texas home equity loan can only be permitted one time per year by the borrower regardless of how fast he can pay the whole amount.
There is also a 12 day cooling off period from the time the borrower made the application for Texas home equity loan and has received a special notice about his rights before the lender closes the deal. This way the borrower can have time to reconsider his decision.
After the 12-day grace period and the Texas home equity loan closes, the borrower will be given another 3 days to change his mind to cancel the transaction without any penalty or charge. Loan proceeds will only be given to the buyer after the third day period.
To compare with other loans, Texas home equity loan protects the borrower from the lender from any personal liability should the home may be lose in foreclosure. This means the lender cannot sue the buyer in court for failing to pay. Further, the lender cannot make any private foreclosure but only the court must order foreclosure of the property.
Texas home equity loan may be the best choice to many. But before closing the deal, the borrower should know the details on the loan and make sure to pay the due on time and in full to reap the benefit of the loan.
by: Danielle Wendeburg
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